1:09-cv-03609
N.D. Ga.Mar 28, 2012Background
- Schütz sues Mauser and NCG for trademark infringement, false advertising, and unjust enrichment related to cross-bottling of IBCs using Schütz cages with Mauser bottles.
- Schütz manufactures and sells new and reconditioned IBCs under the Schütz brand; reconditioning includes washing or rebottling.
- Mauser/NCG cross-bottle Schütz cages with Mauser bottles, leaving Schütz marks on remanufactured units; cross-bottled IBCs often bear Schütz branding.
- Regulatory frameworks (USDOT/UN) govern testing, labeling (UN String), and certification for hazardous-material IBCs, including some cross-bottled units.
- NCG is Mauser-owned and is a major cross-bottler; it supplies Mauser bottles and often uses Schütz cages in cross-bottled products, with certain units certified for hazards transport.
- Plaintiff moves for summary judgment on NCG’s counterclaims, and Defendants move for summary judgment on Schütz’s trademark and false advertising claims; court resolves on a motion for summary judgment and leaves issues for trial where appropriate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether NCG’s Lanham Act false advertising claim is supported. | NCG contends statements 1-5 are literally false. | Schütz argues statements are true or ambiguous. | Statements 1-5 deemed ambiguous; not literally false. |
| Whether UDTPA product disparagement claim lies. | NCG asserts statements 1-5 are actionable under UDTPA. | Schütz argues statements 6-19 are privileged; 1-5 not false. | Statements 1-5 not actionable; 6-19 privileged; UDTPA claim limited accordingly. |
| Whether Schütz has trademark rights in the Schütz name and likelihood of confusion with cross-bottled IBCs. | Schütz asserts strong, secondary meaning and likelihood of confusion; abandonment not proven. | Mauser/NCG challenge rights and likelihood of confusion. | Schütz shown to have protectable rights and likelihood of confusion; triable issues remain as to dissemination and source designation. |
| Whether Defendants’ false advertising and related claims fail for dissemination and literal falsity. | Claims about cross-bottling are false or misleading. | Statements not disseminated as advertising or are not literally false. | Statements 1,2,4,7-9,11-14,30 not sufficiently disseminated to constitute advertising; 26-28 may be literally false; others unresolved. |
| Whether unjust enrichment claim survives. | Defendants benefited from alleged misuse; unjust enrichment warranted. | No clear benefit or wrongdoing. | Issues of material fact preclude summary judgment; unjust enrichment could proceed. |
Key Cases Cited
- Osmose, Inc. v. Viance, LLC, 612 F.3d 1298 (11th Cir. 2010) (analysis of literally false and ambiguous statements in false advertising claims)
- Johnson & Johnson Vision Care, Inc. v. 1-800 Contacts, Inc., 299 F.3d 1242 (11th Cir. 2002) (elements of Lanham Act false advertising; requirement of deception and impact on purchasing decisions)
- Davidoff & CIE v. PLD Int’l Corp., 263 F.3d 1299 (11th Cir. 2001) (material differences test to evaluate likelihood of confusion under first-sale/renovation context)
- Champion Spark Plug Co. v. Sanders, 331 U.S. 125 (1947) (reconditioning of marks and source confusion; disclosure of design differences)
- Seven-Up Co. v. Coca-Cola Co., 86 F.3d 1379 (5th Cir. 1996) (test for dissemination of advertising to constitute Lanham Act advertising; industry-specific dissemination)
- Investacorp, Inc. v. Arabian Inv. Banking Corp. (Investacorp), 931 F.2d 1519 (11th Cir. 1991) (secondary meaning factors for trademarks; strength of mark)
